OZ Minerals and Minotaur join forces in Cloncurry

Minotaur Exploration and OZ Minerals have secured three joint venture partnerships in Cloncurry, Queensland.

According to Minotaur, the three Cloncurry JV agreements align with the company’s project generation strategy to attract top tier farm-in partners, minimising equity dilution to shareholders.

In a previous agreement, OZ Minerals acquired 70 per cent interest in the Eloise JV for $10 million.

In a new Eloise JV agreement, OZ agreed to provide $3 million over the next 24 months, with Minotaur contributing additional tenure to the new partnership.

Minotaur has identified some electromagnetic anomalies at the project named Seer, Big Foot and Little Foot.

In a second agreement, OZ Minerals and Minotaur hold 80 percent and 20 per cent of the Jericho JV, respectively. The Jericho JV was separated from the Eloise JV in April this year.

Under the agreement, OZ Minerals will finance all of Minotaur’s share of expenditure until positive cash flow occurs at the Jericho project.

The Cloncurry Alliance, a new exclusivity arrangement, was also signed. The arrangement covers 24,000 square kilometres between Mt Isa and McKinlay to the south-east of Cloncurry.

The companies are collaborating to identify prospects and opportunities to contribute towards a Cloncurry minerals ‘hub’.

The Alliance gives Minotaur $1 million in funding over 24 months to identify suitable candidates and present options to OZ Minerals for acquisition funding for a 70 per cent interest in any funded targets.

Minotaur’s JV-focussed business model has allowed it to ramp up its exploration spend to $9.1 million in the 2019 financial year.

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